Please sir I want some more
There are fears that as the number of pensioners increase, the Government may have to adopt the role of the master in Oliver Twist when it comes to honouring a state pension.
According to Pensions Minister, Steve Webb, there are now 50 per cent more pensioners and, as a result, it is naïve to hope further Governments can sustain the state pension.
Speaking to The House Magazine, Mr Webb said:
“There’s a limit to what one can do to address those sorts of things. When you have got nine workers to every pensioner, you can have pretty generous pensions. When you’ve got two workers to every pensioner, it just ain’t gonna hold.”
There is already legislation in place to increase the state pension age to 68 as well as future plans to link it to average life expectancy, a move which would see current school leavers forced to work until the age of 77.
So with the state pension coming up short and personal pension pots falling massively below par, how can retirees fill this financial void? One option is equity release as Richard Espley, Head of Equity Release at Goldsmith Williams Solicitors, explains:
“With news that up to 12 million people will face a financial shortfall in retirement, it is no surprise that many are looking for ways to bridge that gap.
“Equity release allows a homeowner to release some of the value in their property, either as a lump sum or in smaller, more regular amounts whilst retaining the right to live there, therefore ensuring they have a better time of it than Oliver.”
Content correct at time of publication